APA Should I Buy
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APA Corp is not a strong buy for a beginner, long-term investor at this time. The stock's recent price decline, weak financial performance, mixed analyst sentiment, and lack of significant positive catalysts make it less appealing for immediate investment. Holding off for clearer positive signals or improved fundamentals is recommended.
The technical indicators are mixed. While the MACD is positive and contracting, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200), the RSI is neutral at 48.796, and the stock is trading near its pivot level of 26.96. Support is at 25.715, and resistance is at 28.205. The stock's recent price decline of -4.74% in the regular market session indicates bearish sentiment.
The company's operational consistency has improved, and there are forward catalysts as noted by RBC Capital. The bullish moving averages and low put-call ratios in the options market also indicate some positive sentiment.
The company's financial performance in Q3 2025 was weak, with significant declines in revenue (-16.44% YoY), net income (-191.93% YoY), and EPS (-195.00% YoY). Analysts have mixed to negative sentiment, with several downgrades and reduced price targets. Hedge funds are selling heavily, and there is no recent news or congress trading data to support a positive outlook.
In Q3 2025, APA Corp's revenue dropped to $2.115 billion (-16.44% YoY), net income dropped to $205 million (-191.93% YoY), and EPS fell to 0.57 (-195.00% YoY). Gross margin also declined slightly to 46.81% (-3.36% YoY), reflecting a challenging financial environment.
Analyst sentiment is mixed to negative. RBC Capital raised the price target slightly to $26 but maintained a Sector Perform rating. Morgan Stanley, Barclays, and Bernstein lowered price targets, with Barclays downgrading the stock to Underweight. UBS and Mizuho highlighted long-term potential but maintained Neutral and Underperform ratings, respectively. William Blair is more optimistic with an Outperform rating and a $32 price target.
